Question: *I try many output but didn't work * Crane Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets

*I try many output but didn't work * Crane Monograms sells stadium blankets that have been monogrammed with high school and university emblems. The blankets retail for $50 throughout the country to loyal alumni of over 2,900 schools. Cranes variable costs are 41% of sales; fixed costs are $118,000 per month.

Question: Assume that variable costs increase to 45% of the current sales price and fixed costs increase by $10,400 per month. If Crane were to raise its sales price by 10% to cover these new costs, what would be the new annual breakeven point in sales dollars? (Round sales price to 2 decimal places, e.g. 52.75 and final answer to 0 decimal places, e.g. 5,275.)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!